Responsibilities Fiduciary

Generally, the board of directors of a corporation has responsibilities to its investors, including a fiduciary duty. In overseeing the corporation's management and financial affairs, the board owes both a duty of loyalty and a duty of care to the corporation's shareholders. With respect to the duty of loyalty, directors must act in good faith at all times, in a manner that is reasonably calculated to further the best interests of the corporation. Likewise, as to the duty of care, directors must consider all reasonably available material information, and act with care in making decisions. However, the directors are given a fair amount of discretion in making business decisions, under what is known as the "business judgment rule". In other words, a court reviewing a director's business decisions presumes that the directors acted in good faith, on an informed basis, and with the belief that they were acting in the best interest of the corporation. Therefore, it requires a fair amount of proof to overcome the business judgment rule.

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  • Breach Of Fiduciary Duty

    A person that is legally tasked with managing the money of another individual is said to have “fiduciary dutie...
    • Site: securitieslawfirms.com
  • Duties of an Executor of a Will

    An executor is the person selected in a will to settle that person’s estate. Essentially, this individual is i...
    • Site: willsandtrustslawfirms.com
    • 5 of 6 user(s) found this useful
  • Nursing Home Neglect and Nursing Home Abuse

    Nursing home neglect or nursing home abuse can take many forms and is not limited physical, emotional, or psyc...
    • Site: lawfirms.com
  • Bankruptcy Questions

    For individuals facing bankruptcy questions, the financial stress and pressures from a potential bankruptcy pr...
    • Site: lawfirms.com
  • Deed of Title: Types, Requirements and Restrictions

    A deed of title is a formal document, which serves as evidence of property ownership. It is used for transferr...
    • Site: realestatelawyers.com
    • 4 of 6 user(s) found this useful

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